A Channel in action

Adani Enterprises Daily Chart showing a Channel

A line joining the top A with the first lower top C is extended and forms the upper part of the downward sloping channel.

Another line is drawn from the first bottom B parallel to line AC.

This is the lower part of the downward sloping channel.

Observe how price stays within this channel.

Support is taken at D and F.

Resistance is taken at E.

Price breaks through the channel at point G.

Notice how price takes support on top of the channel at point H indicating role reversal of the upper trendline.

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